Technical & Fundamental Outlook on one of the Most traded pairs
Financial & Technical Report on Gold
Fundamental View: There was one of the most important fundamental data on Friday which was the release of Non Farm Payroll Data which had increased to 227,000 vs. forecast of 209,000. Non Farm Payroll indicates that the change in the number of people employed excluding the agriculture sector. Unemployment in the US has remained at 8.3% which had been same as expected which was announced along with the non farm Payroll data. The news was positive for the US and that is the reason you would see a drop in majority of the pairs.
Attached is an hourly chart for Gold as continuation of the previous chart.
Technical View on Gold: There are 2 trend lines shown in the chart, the downtrend channel (indicated by a green line acting as a support and resistance which have already explained in the previous sessions) and the uptrend channel (indicated by the yellow golden line). As you can see from the chart that Gold had created an uptrend since 6th of March and you can see that most of the time it is between the channel indicating the market going up smoothly within the channel. The White bubbles shown in the chart can help you in short term counter position bouncing from the trendline. The Red bubbles indicates the breakout from the trend. On Friday when the market had broken the trendline, Gold fell sharply from 1698 to 1676 due to channel breakout confirmation and a positive data from the US indicating to sell against the dollar. Both technical and fundamental view applied would give a profit of over 20$. Say 1 standard lot traded on Gold (XAUUSD) would give a profit of 20$ x 100 ounces= 2000$ within 30minutes. It is very important to realise the time value of money and riskiness/profitability of the trade however you could even go for short term trading for short term profits.
Purple and Red Lines indicate the resistance and support levels as follows:
R1 / 1716.00 R2 / 1725.00 R3 / 1732.00
S1 / 1701.50 S2 / 1694.00 S3 / 1688.00
EURUSD 1 hr Chart
Attached is the hourly chart for the EURUSD recognizing the short term trends on an intra-day basis from 27th February to 12th of March.
Between 27th-29th February, you can see that the market has been in an uptrend bouncing within the trenline (indicated by the greenlines). On 29th February the Euro trend was broken as it broke the uptrend channel and EURUSD fell from 1.3420 to 1.3314.
Between 29th February-2nd March, EURUSD was moving in a downtrend channel (inidcated by the redlines). The Euro eventually broke the downtrend channel to create further lows to a low of 1.3185 which appeared on 2nd March. This level became a key level for the following day as a support level.
Between 6th March-12th March, Euro was moving in a downtrend channel (indicated by the yellow gold lines) from 6th of March. On 8th of March, you can see a big breakout appeared breaking the yellow lines from 1.3156 to 1.3290 which was also moving in an uptrend steeper channel between 7th March to 9th March. On 9th March, the uptrend channel had a major breakout breaking the green trend line from approx. 1.3234 to a low of 1.3083. Apparently Euro had to enter in the same downtrend channel line (indicated by the yellow lines).
Indications- Euro currently following on a downtrend channel line indicates the market is bullish at the moment. Trading can either take place bouncing from the lines to go for counter position or breaking the line for continuing either an uptrend or down trend.
EURUSD Resistance and Support Levels.
R1 / 1.3155 R2 / 1.3185 R3 / 1.3220
S1 / 1.3100 S2 / 1.3075 S3 / 1.3000
Eurusd 1 hr chart on 19th March
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I would like to use this thread for Newbies, Intermediate traders and Expert Traders all around the world for all to benefit and get the feel of the market. Before I publish any kind of Technical Data or any kind of analysis on this thread I would like to introduce myself to you all.
Here you go- My name is Avinash Bhojwani, I am from India but I have been staying in Dubai throughout my life. My email in case you require is- avi.pb87@gmail.com. I have been working with one of the top brokers for long (approx. over 5 years) and have been analysing, training and advising clients/traders into the market as I love to do as a passion. I always feel enlightened if traders have the knowledge and experience whenever entering the market with a trade plan and proper risk management system apart from performing their own analysis. With that knowledge it will always help them to know what is happening in the market around them. You all especially know that even though over 70% of the traders don't have a good amount of information about the market while trading and eventually end up in losing big amounts. I have spent literally thousands of hours looking at charts trying to understand how different currencies move with technical analysis, in reaction to news results and sentiments of investors how everyone reacts to news.
I appreciate for all your feedback and questions in replying me. This new thread would be open to all traders to discuss and we all can share valuable information and analysis helpful to all the traders.